SENIOR HIGH

Principles of Marketing
SCHOOL

Supplementary Materials
(Module 1)

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PRINCIPLES OF MARKETING
(Localized Module)
3rd Quarter – Module 1
Week 1 – Week 2
Marketing Principles and Strategies

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For the learner:
Welcome to the Introduction to Philosophy of the Human Person Alternative Delivery Mode (ADM)
Module on Principles of Marketing.

The hand is one of the most symbolized part of the human body. It is often used to depict skill, action
and purpose. Through our hands we may learn, create and accomplish. Hence, the hand in this learning
resource signifies that you as a learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in your own hands!
This module was designed to provide you with fun and meaningful opportunities for guided and
independent learning at your own pace and time. You will be enabled to process the contents of the
learning resource while being an active learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or competencies
you are expected to learn in the module.

What I Know This part includes an activity that aims to check what
you already know about the lesson to take.

What’s In This is a brief drill or review to help you link the current
lesson with the previous one.

What’s New In this portion, the new lesson will be introduced to you
in various ways such as a story, a song, a poem, a
problem opener, an activity or a situation.

What Is It This section provides a brief discussion of the lesson. This aims to
help you discover and understand new concepts and skills.

What’s more This comprises activities for independent practice to

solidify your understanding and skills of the topic.

What I have learned This includes questions or blank sentence/paragraph to

be filled in to process what you learned from the lesson.

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 Assessment This is a task which aims to evaluate your level of
mastery in achieving the learning competency.

Additional In this portion, another activity will be given to you to enrich

Activities your knowledge or skill of the lesson learned. This also
tends retention of learned concepts.

Answer Key This contains answers to all activities in the module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the module. Use a
separate sheet or the prescribe answer sheet of your teacher in answering the exercises.

2. Do not forget to answer What I Know before moving on to the other activities included in the
module.

3. Read the instruction carefully before doing each task.

4. Observe honesty and integrity in doing the tasks and checking your answers.

5. Finish the task at hand before proceeding to the next.

6. Return this module to your teacher/facilitator once you are through with it.

7. If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult
your teacher or facilitator. Always bear in mind that you are not alone.

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 Week 1
What I Know Day 1-2

Direction: Multiple Choice. Read the sentences and choose the correct answer that describe in the
sentences. Write your answer in your answer sheet.

1. In the organizational structure, it is responsible for managing of income and expenses of a

company.
a. Sales and marketing c. human resource and training
b. production d. finance and accounting
2. In the marketing process, what step will be found to concept construct an integrated marketing
program that delivers superior value?
a. 1st step c. 3rd step
b. 2nd step d. 4th step
3. A total system of interacting business activities designed to plan, price, promote and distribute
want-satisfying goods or services to present and potential customers.
a. market c. marketing
b. consumerism d. promotion
4. The qualifying determinants of consumers in purchasing a product.
a. needs c. expectations
b. wants d. market
5. The part of the organization that manages the staffing and training of people to be efficient and
productive in their workplace.
a. sales and marketing c. human resource and training
b. production d. finance and accounting
6. The deciding factors amid various options.
a. needs c. expectations
b. wants d. market
7. 4P’s or Product, Price, Place and Promotion is also called.
a. Modern Marketing System c. Sales Promotion
b. Marketing Mix d. Consumerism
8. The beliefs of the consumers on the benefits and advantages they will get from a product.
a. needs c. expectations
b. wants d. market
9. Elements of 3Cs in Marketing.
a. Customer, Company, Commitment
b. Customer, Consulate, Competition
c. Customer, Consulate, Commitment
d. Customer, Company, Competition
10. The process on continuously and profitably satisfying the target customer’s needs wants, and
expectations superior to the competition.
a. promotion c. consumerism
b. marketing d. production

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 Week 1-2 Marketing Principles and Strategies

“It is wise to understand the intricacies of Marketing above anything else. It will serve as your
competitive advantage to be a market leader”

The Big Idea

Most people think that marketing is purely a business of selling. This thinking is a common
misunderstanding on marketing. The natural ability of man to automate his/her word association skills is
one of the culprits in this misconception. The term ‘marketing’ is usually associated with its root word
‘market’, which typically defined as a place where commercial dealings, the selling and the purchasing of
goods are happening.

Marketing in this sense has a deeper meaning and function in the business process. It plays a pivotal role
in the success of an enterprise. It serves as the life force that feeds energy to the engines of an
institution.

Thus, this lesson will present the definitions of marketing, which will be essential for the learners in
grasping the true concept of marketing. This lesson will emphasize the goals of marketing. Lastly, this
lesson will walk the learners through the traditional approaches to marketing in connection to the
contemporary approaches to marketing.

What I Need to Know

The Game Plan

At the end of the lesson, the learners should be able to:
1. Define and understand marketing
2. Discuss the goals of marketing
3. Describe the traditional approaches to marketing
4. Identify and explain the contemporary marketing approaches

Get Down to Business

Many practitioners have regarded the importance of marketing in the lifespan of business. Its concept
and functions have evolved through times. From its simple concept of selling a product, to a more
complex idea of strategizing the different elements in the business process to achieve the company’s
objectives. As future business practitioners, it is necessary to understand the core principles of
marketing by starting with its definition.

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 What Is It

Defining Marketing

Every marketing book offers different concepts and definitions of marketing. This is because of
the dynamic nature of marketing. However, there are three definitions that can be considered
essential to the learners in studying the different approaches to marketing. One of which came
from the book Fundamentals of Marketing by William Stanton.

In the said book, marketing was defined as “a total system of interacting business activities
designed to plan, price, promote and distribute want-satisfying goods or services to present and
potential customers”.
This definition suggest that marketing has an integrated process in which all elements are
interdependently operating in a synchronized manner. Meaning, each element in Marketing,
the Product, the Price, the Promotion and the Place or the4Ps of Marketing, is strategically
planned to complement one another to achieve the company’s goals.

For instance, when a business persons plans on a particular product to offer potential
customers, he will also think of how much the product will be priced, where it will be sold and
how it will be promoted to create impulsion in the market at the same time.

Another key aspect that has to be accounted in this definition of Stanton is the idea of want
satisfying goods or services to present and potential customer. In a marketing perspective,
creating and offering a product based on the customer’s dimensions of satisfaction (the needs,
wants and expectations) provides a greater advantage in the competition.

This concept can be supported by the definition of marketing that can be found in the book of
Fundamentals of Marketing in the Philippine Setting by Josiah Go and Chiqui Escareal-Go. Based
on the said book, “Marketing is the process of continuously and profitably satisfying the target
customer’s needs, wants and expectations superior to the competition.”

A wise marketer always considers the needs, wants and expectations of his target consumers in
planning and developing a product. This information is essential in creating a product and
designing marketing strategies. Stated in the book Principles of Marketing by Philip Kotler and
Gary Armstrong, the new sense of marketing is to satisfy the needs of the customers by
creating superior customers value. Hence, “Marketing is the process by which companies
create value for customers and build strong relationship to capture value from customers in
return.” (Kotler and Armstrong)

Based on the needs of the customers, a marketer can develop a product that offers excellent
customers value, and can price, distribute and promote it effectively, which will make it more
salable in the market.

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Learners should remember that Marketing is an integrated process by which the product, prize,
place and promotion are strategically planned and implemented to satisfy the customer’s
needs, wants and expectations thus, establish a mutually beneficial relationship.

Fresh Perspective: Understanding Needs, Wants and

Expectations of the Consumers

Every human being has to be satisfied like the need for food, shelter and clothing. But not
everyone shares the same taste in picking food, preferring where to settle, and choosing what
to wear. And not all people have the same beliefs in the benefits they will get from the
commodities available in the market. This is simply because consumers have set their standards
in looking for products that will satisfy them based on their needs, wants and expectations.

The qualifying determinants of consumers in purchasing a product are called needs. These are
the primary motivation why they need to buy the commodity. The deciding factors amid various
options are called wants. Moreover, the beliefs of the consumers on the benefits and
advantages they will get from a product are called expectations.

For example, people buy soda because they need to quench their thirst. However, most of
them want fruit flavored sodas instead of cola-based sodas because they expect that fruit
flavored sodas contain essentials vitamins, which are beneficial for their health.

Knowing this concept of needs, wants and expectations of consumers will provided a practical
advantage to any enterprise. That is why most companies conduct market research on this
before producing a product. They have to make sure that their product is highly needed, will be
wanted, and will meet the expectations of the prospective market of the product to meet the
marketing goals of their company.

Understanding the Goals of Marketing

Marketing goals are the ultimate objectives that an organizations desires to attain through
effective marketing programs.

In the Principles of Marketing book of Gary Armstrong, Stewart Adam, Sara Denise, and Philip
Kotler, the two goals or marketing identified as follows:

1. To attract the new customers by promising superior value

2. To keep and grow current customers by delivering satisfaction

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Marketing experts believe that many consumers are persuaded to purchase new products
because of their superior value premises. This is the reason why in many product labels,
brochures, flyers and advertisements, the superior value premises of product are being
emphasized such as ‘best price’, ‘premium quality’, world’s no. 1, ‘superior affordable’, ‘finest
beef in town’, ‘100% Natural’ and many more.

These many claims of products superiority attract the attentions of the consumers that most of
the times leads to buying and experiencing the product or service. One can assume that if the
consumers will be satisfied with the performance of the product and/or service based on their
needs, wants and expectation, there is a great likelihood that they will repeat on buying the
product because of the good experience, which may lead to patronizing of the product and
thus, achieving the marketing goals.

Del Monte Pineapple Juice superior value

premise: Made from 100% pineapple juice,
which provides Vitamins A, C and E that
make the immune system stronger.

Kotler and Armstrong offer an easy way of understanding the marketing process using these five
steps.

Step 1. Understand the marketplace and customers needs and wants – the marketer
should understand the consumers by knowing what and how their needs and
wants will be satisfied. Through a market research, the profiles of the target
consumers can be identified as the consumers buying behavior.

Step 2. Design customers driven marketing strategy – based on the consumers profile
the marketer should develop a marketing strategy that would effectively reach
and generate favorable actions from the consumers.

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 Step 3. Construct an integrated marketing program that delivers superior value – with
the selected marketing strategy; the marketer should create marketing programs
by fusing the different element of marketing of the 4Ps, which in effect reveals
the value for the customers.

Step 4. Build profitable relationship and create customer delight- establishing a

profitable relationship with the customers is critical in the process. Thus, the
marketer should apply customer relationship management all throughout the
process to generate satisfaction and delight among the customers.

Step 5. Capture value from customers to create profits and customers equity – having
good customer relationship by delivering excellent value increases company’s
profit and create strong customers equity.

Recognizing the Traditional Approaches to Marketing and Realizing the

Contemporary Approaches to Marketing

Through the years, marketing has been part of people’s life. Voluntarily or involuntarily,
Individuals in the society is exposed to marketing because it is everywhere. It may approach
people in traditional forms like in the billboards along highways, in the brochures or flyers being
handed by sales persons in the malls, in the films that being watched by millions of moviegoers
in cinema houses, and in the advertisements on television, radio, magazine and newspaper, or
perhaps it is being sent to the mailboxes.

From these traditional modes, marketers have developed new approaches to reach a greater
number of people on a personal and direct manner using new technologies. Now, It can reach
individuals through their mobile phones via text messaging, and in their personal accounts in
online social networks they visit, or in the websites the explore. Anytime and anywhere,
marketing can now touch the lives of individuals. This is because marketers would like to be
part of the consumer’s life by experiencing their brands, by living with their brands.

However, getting the customer’s attention is just one of the few things that the learners should
consider in marketing the products or services. Knowing the functions of marketing in the
business structure will provide the learners better understanding of the traditional approach to
marketing.

Marketing is an integral part of the business process. A typical organizational structures

comprises of finance and/or accounting, human resource and training, service operations and
production, and sales and marketing service. At the top of these divisions is the management,
which core functions are planning, organizing, leading or directing, coordinating, and evaluating
the workforce, structures, plans and programs of all divisions.

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 Figure 1.1: Basic Organizational Structure

It can be said that marketing is the business itself. Regarding the functional distinction between
marketing and business, marketing is a company’s profit center while rest is cost centers based
on the book Principles of Marketing by Maria Victoria M. ac-at.

Therefore, marketing is the lifeblood of the company. It is the one who generates the income of
a company through the sales, profit, and/or revenue. Its discipline crosses the other divisions in
the organizations.

Finance and Accounting are responsible for managing of income and expenses of a company.
Since that marketing is responsible for company’s sales, which determines the income of the
company, there should be a strong coordination between the marketing and finance people in
setting and attaining the goals of the company.

Human Resource and Training manages the staffing and training of people to be efficient and
productive in their workplace. In connection with the marketing, achieving the target sales and
market share is largely based on sales personnel that are well trained, highly motivated and
proficient in the product and service they carry aligned to the marketing plan. Marketing
collaborates with Human Resource and Training in selecting and training the staff to be efficient
and effective in their roles in attaining the company’s goals.

Service Operations and Production is a division responsible for producing the product or
rendering services according to the requirements of the customers. Therefore, this division has
a direct connection with marketing regarding controlling the quality of the outputs that is based
on the marketing plan.

Another traditional approach that learners should understand is the concept of 3Cs and the
relationship of its variables (company, customers, and competition).

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The 3Cs Concept is a structured approach to marketing. The relationships of its variables will
show the significant role of looking at the competitive landscape in expanding market share and
analyzing the needs, wants and expectations of the customers in increasing sales, resulting in
greater profit.

The Company and the Customer – the company, creates and develops a product or service
based on the client’s needs, wants and expectations. Thus, it is important for the marketer to
analyze the client’s profile, securing that his or her needs are satisfied, wants are fulfilled, and
expectations are answered.

The Company and the Competition – the company, should have a deep look around of its
competitive landscape. An environment scanning is necessary in identifying various brand
competitions. This will provide the company to look for opportunities in surrounding the
competing brands and capture significant market share in the industry.

From the traditional to contemporary approaches in looking at marketing, the concepts and
strategies of marketing were evolved through times.

Developed by E. Jerome McCarthy, the Marketing Mix is a tool in marketing that helps
companies to identify the right product to offer to the market, determine the right price and
place to avail the product, and select the most appropriate promotional tools to carry out the
persuasive message.

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 Product Price

Promotion Place

Figure 1.3: The Marketing Mix

It has been said that to be successful in the market, a marketer should produce products or
services that are appealing to the customers. For a start, here are simple questions that
learners can use in planning a product:

 Who are the intended customers of the product or service?

 What do intended customers want from the product or service?
 What needs of the intended customers does the product satisfy?
 Do the features and benefits of the product meet the expectations of the intended
customers?
 What are the brand name and packaging of the product or service?

Price is on the essential factors, which affected the decision of customers in buying the product
or service. Thus, most goods and/or services attributed its success in the market to its correct
pricing strategy. Some companies consider offering their goods and/or services in discounted
price and inviting terms of sales. Here are some questions that learners can be use in pricing the
product:

 How does the intended customers perceive the value of product or service?
 What are the prices of the competing brands in the market?
 How will the product or service be priced compared to other competing brands in the
market?
 Does the price reasonable to the quality of the product or service?

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  Would it be wise to offer the product or service at a discounted price? If so, how much
discount would be the best to offer the product or service to the intended customers?

With the right product and the right price, the next step that a marketer will think of it’s the
distribution plan for the product. At this point, the marketer should find suitable locations or
channels where the product will be available. The learners can use the following questions as
guide for the distribution plan:

 Where do the intended customers would like to buy the product or to avail the service?
 Do the selected channels of distribution accessible to the intended customers?
 Do the selected channels of distribution appealing to the intended customers?
 Do the selected channels of distribution need to have sales personnel to assist the
intended customers?
 Are there competition in the selected channels? How does the product or service draw a
distinction with other competing brands available in the selected channels of
distribution?

Everything about the product, price, and the place should be communicated using the
appropriate vehicles. This is where the marketer thinks of the promotion of the product. The
learners should take note that in choosing the promotional tools, the marketer should consider
the right medium and the right message that will stimulate favorable response to the target
customers. The common tools that marketers use in promoting products or services are the
following:

 Personal Selling
 Sales Promotion
 Advertising
 Publicity
 Public Relations

In planning the promotional mix, the learners may use the following question as their guide:

 What are the key selling points of the products or service that need to be communicate?
 Based on the key selling points of the product or service, what is the message that can
influence or persuade the intended customers to buy the product or avail the service?
 What are the appropriate tools that can be used to communicate the message?
 What do competing brands say? What are their tools?
 Considering the claims and tools used by the competing brands, what are the best
promotional tools to outwit the competition? What is the right message in facing the
competition?

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Another new approach to marketing is the concept of Customer-Managed Relationships.
According to Kotler and Armstrong, marketers are no longer asking only ‘How can we reach our
customer’s? However, also’ How should our clients reach us? and even ‘How can our clients
reach each other?’ This new concept can be found in the Modern Marketing System.

This Modern Marketing System is comprised of essential variable of marketing system such as
supplier, company, competitors, marketing intermediaries, consumers, and major
environmental approaches. All given variables are interdependent to each other and consider
as one whole system.

There are fundamental concepts in this system that are important in the study of marketing.
Thus, the learners should consider the following:

 To identify the needs of the consumers and the market, the company and competitors
should examine and connect with them.
 Produce and convey the products, services, experiences, and message to the consumers,
either directly or through marketing intermediaries (e.g., advertising or promotional
agencies)
 Environmental forces such as demographic, economic, natural, technological, political,
and socio-cultural can affect the relationships between the company and consumers,
the competitors and consumers, and the supplier and consumers.

With the given concepts, the learners must remember that the success of establishing
profitable relationships is not solely dependent on company’s own efforts but also on how the
other variables in the system answer the needs of the consumers.

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 What’s More
Week 1
Day 3-4

Activity 1: The Synergy

1. Make a simple product plan for a beauty soap. Please be guided by the following:
a. Conduct a market research by interviewing ten young women aged 20 to 25
years old, the user of beauty soap.

b. Find out their needs, wants, and expectations to the beauty soap they are
using. Use the matrix below:

Variables NEEDS WANTS EXPECTATIONS

Product
(Beauty Soap)
Price
Place
Promotion

Activity 2 : Based in the gathered information, formulate a product plan using guide below:

COMPANY NAME :
PRODUCT NAME :
TARGET CONSUMER :
SUPERIOR VALUE PREMISE :
PRICE :
DISTRIBUTION :
PROMOTION :
A. MESSAGE
B. CHANNELS OR TOOLS

2. Form a dyad. Choose an existing product in the market. List down all the competing
brands of the chosen product. As guide, use the matrix below:

Competing Superior Price Place Promotion

Brands Value

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 Additional Activities Week 2
Day 1-2

Activity 3: Use the matrix as guide to describe the competitive landscape.

Read the case study below.

A good friend of yours is planning to put up a salon on your campus. You noticed that
there are two competing salons existing in the vicinity. The first salon offers services at
the very low price, and it is called ‘Student Price Promo.’ The other salon has a different
approach to its customers. Their price is higher compared to the first salon, but their
services are more sophisticated, and it is called ‘Service Royale.’ As a good friend, you
advised your friend about the competitions between the two salons. She appreciated
the facts that you gave her and asked you to help her to plan her salon business since
that you have knowledge in marketing.

Please answer the following question:

Product Price
 Who are the intended customers of  How does the intended customer
the product or service? perceive the value of product or
 What do intended customers want service?
from the product or service?  What are the prices of the competing
 What needs of the intended brands in the market?
customers does the product satisfy?  How will the product or service be
 Do the features and benefits of the priced compared to other competing
product meet the expectations of the brands in the market?
intended customers?  Does the price reasonable to the
 What are the brand name and quality of the product or service?
packaging of the product or service?  Would it be wised to offer the
product or service at a discounted
price? If so, how much discount
would be the best to provide the
product or service to
the intended customers?

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Raise the Bar

I. True or False: Write T if the statement is true, and F if the statement is false.

1. Marketing is the process by which companies create value for customers and
build strong relationships to capture value from customers in return.

2. Sales and Marketing Service is a division responsible for producing the product
or rendering services according to the requirements of the customers.

3. The success of establishing profitable relationships is not solely dependent on

company’s efforts but also on how the other variables in the system answer the
needs of the consumers.

4. To attract the new customers by giving superior value and to keep and grow
current customers by delivering satisfaction are the two concepts to consider in
analyzing the marketing system.

5. The qualifying determinants of consumers in purchasing a product are called

wants?

6. To identify the needs of the consumers and the market, the company and
competitors should examine and connect with them.

7. Claims like ‘best price’, ‘premium quality’, ‘world’s no. 1’, ‘super affordable’,
‘finest beef in town’, and ‘100% Natural’ are examples of marketing
intermediaries.

8. The company creates and develops a product or service based on the

customer’s needs, wants and expectations.

9. Environmental forces have no effect on the relationships between the

enterprise and consumers, the competitors and consumers, and the supplier and
consumers.

10. Marketing is an integral part of the business process.

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 What I have Learned Week 2
Day 3-4

Activity 4
Enumeration: Write the correct answer.
1-6. Give the six (6) essential variables in Modern Marketing System

1.
2.
3.
4.
5.
6.

7-10. Provide the four (4) divisions in Basic Organizational Structure

7.
8.
9.
10.

Go Extra Mile

1. Go to the nearest fast food chain in your house and observe their menu. Which among the
meals will satisfy your needs?

2. Will your chosen meal meet your wants? Describe your wants.

3. Did the fast food chain meet your expectations? List down your expectations and
check which expectations were met, and which were not meet.

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 Assessment

1. Good marketing is no accident, but a result of careful planning and .

a. execution c. selling
b. strategies d. research
2. Marketers often use the term to cover various groupings of customers.
a. people c. demographic
b. buying power d. market
3. The buying process starts when the buyer recognizes a .
a. product c. salesperson from a previous visit
b. an advertisement for the product d. problem or need
4. If actual performance exceeds the expected performance of the product, then
the customer is .
a. satisfied c. dissatisfied
b. delighted d. neutral
5. The act of trading a desired product or service to receive something of value in return
is known as which key concept in marketing?
a. product c. exchange
b. production d. customer

6. Anything that can be offered to a market for attention, acquisition, use or consumption that
might satisfy a want or need is called .
a. idea c. demand
b. product d. service

7. Mr. Lopez buys goods and services for use in the production of products that are sold
and supplied to others. Mr. Lopez is involved in .
a. consumer buying behaviour c. post-purchase dissonance
b. retail buyer behaviour d. business buyer behaviour
8. A social and managerial process by which individuals and organizations obtain what they need
and want through value creation refers to which one of the following concepts?
a. Selling c. Advertising
b. Barter d. Marketing

9. What is the basic property of a service which makes it different from a product?
a. Shape c. Intangibility
b. Size d. Very expensive
10. Which one of the following phrases reflects the marketing concept?
a. This is what I want, won’t you please make it?
b. This is what I make, won’t you please buy it?
c. The supplier is a king in the market.
d. Marketing should be viewed as hunting not gardening.

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